Siemens lets the sun go down on solar power

Published: 22 Oct 2012 11:32 GMT+02:00

German engineering giant Siemens is abandoning its solar energy business in favour of wind and hydropower, the company announced in a statement Monday.

The move was necessary, the firm said, because, "changed framework conditions, lower growth and strong price pressure in the solar markets,” meant the business sector was not meeting its expected goals.

The company will sell Solel Solar Systems, which it acquired in 2009 for $418 million, and the photovoltaic business of its solar and hydro division.

The solar and hydro division generated revenue "in the low triple-digit millions" in the business year ended September 30, 2012, and has "around 800 employees," the company said.

“The global market for solar thermal energy has fallen from four gigawatts to recently a little more than one gigawatt,” said Michael Süß, a member of Siemens’ board of directors and the CEO of its energy sector, in a statement. “In the future, specialized providers will be able to play off their strengths here.”

Siemens CEO Peter Löscher just announced a two-year savings programme, because of weak economic growth, during which all unprofitable enterprises will go under the microscope.

The company is in the midst of talks with interested parties about selling its solar businesses, which will continue operating until a sale is final. Siemens will retain its hydropower business, it confirmed.

Siemens selling the solar division because it makes little or no profit may be linked to Chinese companies dumping (backed by the Chinese gov): http://www.bloomberg.com/news/2012-09-21/european-solar-lobby-says-china-talks-should-wait-for-eu-finding.html

Preventing climate change isn't the primary motivation for diversifying energy sources. ( Recent climate change has already happened, whether it had anything to do with man made C02 is unproven ). The primary motivation for these failed green companies and the extra taxes is to try and diversify the energy supply in advance of the expected decline in oil. We have taken out Iraq, Afghanistan and Libya in the last decade. Syria is underway and sadly Iran are also under the crosshairs. All of this may buy the west another decade of unbridled consumption. The cost of the oil wars pails the investment in green-tech into insignificance. So keep some perspective.

Even if climate change is a myth. Fossil fuels will run dry, fossil fuels pollute the environment, germany is dependent on oil producing countries. What's bad about clean air and an independent energy supply?

Sun resource is the most valuable asset which this earth endows upon human, so many german industry manufacturers always tried their best to take good advantage of it . German auto supplier Schaeffler Ag is one of them , they aleady develop the solar power of future auto fuel solution technology as well as traditional hytropower.But it seems traditional hytropower has its more profitable assurance in this economic downturn for all auto manufacturers including Siemens.But schaeffler is just 4th ranking in auto innovation field behind Siemens , let alone Schaeffler registered 1,832 patents in Germany during the past year ­ the largest number ever.

Siemens was interested in the world solar market ,not just Germany. The main reason is that siemens was no longer competitive in this market. Its expensive to finance R/D only to have it copied by your competitor, especially when you buy many of the components from them, not to mention Government subsidies.

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